how dividend decision effects the shareholders satisfaction and growth of business?
Answers
As the company's dividend has been announced, it increases the firm share prices. On the basis of dividend announcements, investors, shareholders, and potential investors predict the position of company in context of profitability.
As dividends are a form of cash flow to the investor, they are an important reflection of a company's value. It is important to note also that stocks with dividends are less likely to reach unsustainable values. Investors have long known that dividends put a ceiling on market declines.
A dividend is the distribution of some of a company's earnings to a class of its shareholders. Dividends are usually paid in the form of a dividend check. However, they may also be paid in additional shares of stock. The alternative method of paying dividends is in the form of additional shares of stock.